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The image above shows the Greenhouse gas emissions made by Nike in the years 2016-2024

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Nike was founded under the principle of finding cheaper labor in countries like China, Taiwan, and South Korea for the same quality. Because Nike has factory workers in other countries that barely pay their workers, Nike has gotten discriminated against. After a popular Harper’s magazine was released showing that the life of an Indonesian Nike worker got about 14 cents an hour, the public got outraged. This resulted in many people protesting Nike at the 1992 olympics. This led to putting pressure on Michael Jordan and other stars to denounce the brand. Since Nike couldn’t afford to lose Michael Jordan and its other stars, Nike made a concerted effort to improve its factories and labor conditions. These efforts led to raising the minimum age of workers in places where Nike factories were located. This also led to increasing the monitoring of the safety of these factories. While many people still protested Nike, many human rights activists have said that Nike’s efforts have minimized the worst problems at factories. Thus decreasing the number of people protesting the brand.

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In 2016 Nike made a bold commitment to what is called a moonshot: doubling its business while halving its impact on climate change. To get there Nike CEO Mark Parker stated that the Oregon-based company’s innovations in environmental sustainability would be a “powerful engine for growth”. Even though Nike tried to halve its greenhouse gas footprint. To save money Nike has fired about 20% of the employees in charge of Nike’s sustainability initiatives, ProPublica and Oregonian found that about another 10% left voluntarily or transferred to other jobs. As a result of Nike losing about 30% of its employees in charge of reducing the carbon footprint, Nike’s carbon emissions have slightly increased instead of halving their carbon emissions like Nike committed to in 2016. This year Nike makes about 9.54 million metric tons of carbon dioxide which is the least Nike has made in 8 years.

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The outcome of a strong economy is higher incomes which results in consumers spending more money on unneeded products like Nike. These times lead to Nike benefiting significantly shown by its increased income during economic upturns. For example researchers on Tutor2u found that in an economic recovery during 2022 Nike’s income grew by 12%. Around the same time in 2022 Nike held about 27% of the footwear market. Because of this Nike is able to influence suppliers, retailers, and even sporting events. Just as Nike’s income grows during economic upturns Nike’s income decreases during economic slowdowns. These times result in limiting Nike’s influence over suppliers and retailers since consumers are afraid to spend more money.

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We can solve our first problem that though Nike has made efforts to have Nike workers in China, South Korea, and Taiwan, workers in some of these places make as little as $1.67 an hour. This problem can be solved by by Nike having more quality work and raising the minimum wage. We can solve our second problem that Nike said they would halve their environmental footprint which has instead slightly increased since 2016. This problem can be solved if Nike rehired the staff that they lost and made a greater effort to lessen their environmental impact.

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I will be changing my behavior because I don’t like the fact that many workers are working for as little as $1.67. For example Nike workers in China work for around minimum wage which is $3.70 an hour. I will also try to change my behavior because for instance Nike promised to lessen their environmental impact, but has actually raised it a little since 2016 when they promised to halve their carbon emissions. Though I will try to change my behavior it will be very challenging since Nike is the top clothing brand. In addition to that Nike owns 16.4 percent of the clothing market which gives them lots of power.

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Davis, Rob. "Nike Pledged to Shrink Its Carbon Footprint. It Just Slashed the Staff Charged with Making That Happen." Edited by Matthew Kish. Propublica, Robin Sparksman, 11 July 2024, www.propublica.org/article/nike-layoffs-sustainability-climate-change.

"Economics of Market Power - Nike's Market Dominance." Tutor2u, Geoff Riley, 3 Jan. 2024, www.tutor2u.net/economics/reference/economic-factors-giving-market-power-to-nike-in-the-sports-apparel-industry#:~:text=Macroeconomic%20Trends:,it%20significant%20economies%20of%20scale. Accessed 3 Jan. 2024.

Mayer, Jack, and Laura Rodini. "History of Nike: Company Timeline and Facts." TheStreet, Jim Cramer, 30 May 2024, www.thestreet.com/lifestyle/history-of-nike-15057083.

Smith, Karl. "Can Nike Change the Narrative on Sustainability?" Future World, Universal World, 13 Mar. 2024, futurevvorld.com/earth/nike-impact-report-explained-2023-fy23-sustainability-waste-emissions/.

Wilkerson, Michael. "Nike: Oregon Economic Impacts." Edited by Eric Bagwell. Eco Northwest, Ed Whitelaw, 1 Oct. 2023, econw.com/project/nike-oregon-economic-impacts/.

Tiseo, Ian. "Nike, Inc's Greenhouse Gas Emissions from FY 2015 to FY 2023, by Scope." Statista, Stöer Media, 11 July 2024, www.statista.com/statistics/1322509/ghg-emissions-from-nike-by-scope/#:~:text=Nike%2C%20Inc.&text=Nike%20Inc's%20total%20greenhouse%20gas,year%20ended%20May%2031%2C%202023. Accessed 11 July 2024.